DNC to File FEC Complaint Against McCain

Democratic National Committee Chairman Howard Dean told reporters today that the DNC will file a complaint with the Federal Election Commission Monday over Sen. John McCain’s recent letter to the FEC informing them that he is withdrawing from the public financing system for his presidential campaign.

“We are in this complaint to the FEC asserting that the senator and his campaign are still bound to the conditions by matching funds including the spending limits of approximately $56 million dollars,” Dean said.

McCain and his campaign have vigorously disputed that assertion in light of a recent letter from FEC Chairman David Mason to the McCain campaign stating that he cannot formally withdrawal from the system until the FEC obtains more information regarding the terms of a $4 million loan his then cash-strapped campaign obtained last year as well as a formal vote from the commission, which would require an approval from four of the six members on the panel.

The DNC’s complaint alleges that McCain used the promise of matching funds to secure the multi-million dollar bank loan. He also said McCain has benefited from the public financing system which helps facilitate candidates’ ability to get their names on state ballots. He said these actions bind McCain to the system, and he is asking the FEC to investigate those issues.

“The law is very clear. He can not withdraw if he has used the promise of matching funds as collateral for his loan,” Dean said, “John McCain cannot unilaterally withdrawal from the spending limitations.”

Democrats would have a tremendous cash advantage if McCain were held to public financing limits until he formally wins the party nomination in September since he is already approaching the federal limit for primary funds. The campaign finance crusader would then be put in a position of relying on outside groups to flood money into the race on his behalf. Neither Sens. Barack Obama nor Hillary Clinton has opted in to the system for the primaries.

McCain said Friday in Indianapolis that he was unconcerned about the letter and disagreed with its assertions. “It’s not a decision. It’s an opinion, according to our people,” he said, according to Reuters.

In a statement Friday, McCain communications director Jill Hazelbaker asserted that the campaign did not use matching funds as collateral for the loan. “The campaign has been paid no funds by the United States Treasury and never used the certificates issued by the FEC as collateral for its bank loan,” she said, “The right to withdraw from the system is a constitutional right, which prevents the FEC from blocking Senator McCain’s withdrawal without cause.”

Complicating the matter is the FEC itself, which cannot vote on the matter since it is lacking a quorum with only two commissioners seated at this time. Congress has been in a political standoff with the Bush administration over approval of his appointees.

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